Ripple has announced entering into a partnership with DBS Bank and Franklin Templeton to develop repo markets powered by tokenized collateral and stablecoins, marking a significant step in the institutional adoption of blockchain-based financial solutions.

The three firms have signed a memorandum of understanding (MoU) to introduce trading and lending products that leverage tokenized money market funds on the XRP Ledger and Ripples stablecoin, Ripple USD (RLUSD).

XRP Ledger Gains Institutional Edge

As part of the collaboration, DBS Digital Exchange (DDEx) will list sgBENJI, the token of Franklin Templetons Onchain US Dollar Short-Term Money Market Fund, alongside RLUSD. This will allow accredited and institutional clients of DBS to trade between RLUSD and sgBENJI, and enable 24/7 portfolio rebalancing into more stable assets while also generating yield during volatile periods.

The initiative addresses a growing need among digital asset investors, many of whom currently allocate primarily to crypto assets such as Bitcoin, Ether, and XRP without access to yield-generating mechanisms.

In its next phase, the partnership aims to enable repo transactions by allowing clients to use sgBENJI tokens as collateral to unlock liquidity. Investors will be able to obtain credit either through repurchase agreements directly with DBS or via third-party platforms, where DBS will act as a trusted agent holding the collateral.

This model expands liquidity options while, at the same time, ensuring institutional safeguards around pledged assets. To further strengthen interoperability, Franklin Templeton will also tokenize sgBENJI on the XRP Ledger and add to its existing blockchain integrations.

This development comes as institutional interest in digital assets continues to accelerate. In fact, recent survey data, shared by Ripple, indicates that 87% of institutional investors expect to allocate capital to the sector in 2025.

In a statement, Ripples VP and Global Head of Trading and Markets, Nigel Khakoo, said,

2025 has been marked by a series of industry-firsts when it comes to traditional financial institutions moving onchain and the linkup between Ripple, DBS and Franklin Templeton to enable repo trades for a tokenised money market fund with a regulated, stable and liquid mode of exchange such as RLUSD is truly a game-change.

Ripple-BBVA

The development comes less than two weeks after Ripple and Spanish banking giant BBVA signed a custody deal as Europe readies for the Market in Crypto-Assets (MiCA) framework. The agreement enabled BBVA Spain to adopt Ripple Custody for its crypto services.

The partnership strengthens Ripples relationship with BBVA, which was already established through its operations in Switzerland and Turkey.